FX.co ★ US Stocks Set for Big Losses at the Open

U.S. stock futures began the week markedly down, with S&P 500 futures decreasing by 1.1%, Nasdaq 100 futures declining by 1.5%, and Dow Jones futures losing approximately 270 points. This retreat from U.S. assets reflects escalating concerns about the nation’s fiscal and economic outlook. The downturn was sparked by Moody's decision to downgrade the U.S. credit rating from Aaa to Aa1 last Friday, citing the increase in government debt and widening budget deficit as the primary reasons. Intensifying the situation, a significant congressional committee advanced President Trump's tax-cut proposal on Sunday, which features substantial new, unfunded tax cuts, heightening worries about long-term fiscal sustainability. These events follow on the heels of lackluster economic data from last week, further amplifying worries about the U.S. growth trajectory. Major technology stocks experienced declines in premarket trading, with notable drops in Apple (-1.6%), Microsoft (-1.0%), Nvidia (-3.1%), Amazon (-2.0%), Meta (-1.9%), and Alphabet (-1.8%).